Economic outlook, fiscal stability and planning reforms
The Government of the United Kingdom has typically held two major fiscal events each year – the Autumn Budget and the Spring Statement – with each updating on the economy’s performance, significant tax changes, fiscal measures and adjustments to allowances. In 2024, however, Chancellor Rachel Reeves committed to limiting major tax changes to one fiscal event a year, meaning that she had no new tax policies to introduce at the Spring Statement on 26 March 2025.
Despite the absence of immediate changes to personal or business taxation, this Spring Statement remains highly relevant for individuals, business owners and accountants. The Office for Budget Responsibility (OBR) released its latest Economic and Fiscal Outlook (EFO) alongside the Chancellor’s speech, containing revised forecasts for growth, inflation, borrowing and debt. These forecasts inform the government’s approach to public spending, highlight existing economic challenges and shed light on how the government aims to meet its self-imposed “fiscal rules” in the years ahead.